The Director General of the Regulatory Authority for Subcontracting in the Private Sector (ARSP), Ted Beleshayi Kasanda, has revealed significant irregularities in the subcontracting practices of major mining companies in the Democratic Republic of the Congo. In a live online discussion, Beleshayi disclosed that 20 billion USD in payments, roughly the entire subcontracting budget, may have been made to companies that are not eligible to receive them. This has raised concerns about the effectiveness of regulations in the sector.
The ARSP's investigation focused on 14 major mining companies, including Glencore, Ivanhoe Mines, and CMOC, which account for 80-90% of the country's subcontracting business. The probe, which covered the period from 2020 to 2025, found that most subcontractors paid by these companies did not possess the required certification. Beleshayi stated that some companies did not even attempt to obtain the necessary documentation, showing a blatant disregard for the law.
The ARSP's findings contradict earlier reports that 83% of 3.7 billion USD in contracts were awarded to Congolese companies in 2025. Beleshayi described these declarations as "totally unreliable." The authority has initiated further investigations, including analysis of companies' financial records, to determine the actual amounts involved and identify the true owners and shareholders of the companies concerned.
The regulatory body has issued directives to over 1,000 companies following the inspections of 14 major mining groups. Beleshayi also announced that the certification process for subcontractors has been streamlined, with attestations now obtainable online within 10-15 days, compared to over six months previously. However, the ARSP's efforts are being hindered by the reluctance of banks to provide financial records, which are essential for verifying the authenticity of transactions.
The lack of cooperation from banks is a significant obstacle to the ARSP's investigations, as it prevents the authority from cross-checking companies' financial records with independent data. Beleshayi emphasized that access to these records is crucial for determining the extent of irregularities and identifying potential complicit parties. The ARSP is working to strengthen its teams and expand its inspections to cover all 13 sectors of the economy.
The scope of the ARSP's mission extends beyond the mining sector, encompassing various industries. Beleshayi highlighted that his team is working to enhance its analytical capabilities, particularly in examining financial statements. The authority has also launched internal recruitment to bolster its inspection teams. The ARSP's efforts aim to ensure compliance with regulations and promote transparency in subcontracting practices.
The revelations of widespread irregularities in the subcontracting sector have significant implications for the Congolese economy and the mining industry. Further audits and investigations are expected to shed more light on the extent of the irregularities, quantify the amounts involved, and potentially identify those responsible. The ARSP's findings have sparked concerns about governance and oversight in the sector, highlighting the need for more effective regulation and enforcement.
Key points
- 20 billion USD in payments may have been made to ineligible companies in DR Congo's mining sector subcontracting.
- The ARSP's investigation found that most subcontractors paid by major mining companies did not possess the required certification.
- The regulatory body's efforts are being hindered by the reluctance of banks to provide financial records.
